Posted by Arlena1998 on .
What have forecast of economic growth done consistently? Economic growth patterns decreased sharply from 1990-1991. Then they rose sharply and gradually leveled off up until 1999. However, inflation dropped steadily from 1990-1999. It decreased sharply at first and then leveled off from 1994--1994.
1- It over estimated economics growth from1990-1998
2- Underestimated economic growth from 1990-1998
3- Overestimated economic growth from 1996-1999
4- Underestimated economic growth from 1996-1999
I would think it would have been b. Because inflation is caused by an increase in money, decrease in money demand, decrease of goods, increase of demand for goods. So if inflation decreased there was more demand for money but no increase in good supply hence everything levelling out.
BUT I haven't studied economics at school only read up on it slightly...